Jessica: Consumer Proposal for a Professional

‘Jessica’ a Case History: Consumer Proposal for a Professional

When she first contacted David Sklar & Associates, Jessica (not her real name) was a single, 28 year old, Toronto professional – whose career and future was threatened by her out-of-control personal finances.

At 24, Jessica had graduated with a Bachelor of Commerce degree. After a six-month job search, she found an entry-level position in her chosen field, paying $22,000 per year. By that time, she had amassed $12,000 in Student Loans, $7,000 in credit card debt, and owed her older brother $11,000.

During her first year of employment, Jessica was able to get an unsecured, $20,000 loan from her bank – which she used to pay off her credit cards and her brother. Unfortunately, she continued to use her credit cards and live beyond her means.

At work, Jessica performed well and her income increased to $25,000 per year. However, her personal finances were a mess – she missed payments and she began to receive collection calls at work. Jessica’s manager spoke to her about the collection calls. He advised her that having out-of-control personal finances would lead others to question her ability to manage business finances.

Desperate to fix the problem, Jessica approached her bank for a consolidation loan but was turned down. When she spoke with the credit card companies, they would not negotiate with her. She called her brother for a loan, but he suggested that she speak with a Licensed Bankruptcy Trustee instead.

A Bankruptcy would make Jessica unemployable in her chosen field. Worried that she might not be able to continue in her profession, but not knowing what else to do, she took her brother’s advice and called David Sklar & Associates Inc (DSAI) for an appointment.

~~ ~~

At her initial consultation with DSAI, Jessica carefully reviewed her financial situation with Estate Administrator, Jason Sklar – the highlights of which were:

Income $25,000
Unsecured Bank Loan $19,000
Credit Card Debt $7,500
Student Loans* $10,500

 

When Jason discussed all of her options, Jessica was relieved to find out that a Consumer Proposal would:

    • stop the collection calls,
    • reduce her debt load, and
    • NOT put her into Bankruptcy.

Working with Jessica, Jason prepared her Consumer Proposal, which DSAI then registered with the Office of the Superintendent of Bankruptcy; presented the terms to her creditors; and received creditor acceptance.

Jessica’s Proposal was to run for 60 months, during which time she would pay $275/month to DSAI, who would distribute the payment in accordance with the Proposal. At the end of the 60 months, if Jessica honoured the agreement, she would be freed of the debts covered by the Proposal (excluding the Student Loans*).

Although Jessica was familiar with business budgets, and had toyed with personal budgets in the past – she discovered that the process of creating a realistic and liveable budget with Jason, enabled her to understand how she could succeed.

It should be noted that attending two financial counselling sessions are a mandatory requirement in the administration of a consumer proposal.

During her initial credit counselling session, Jessica announced that she had become engaged but was worried that her spending issues might mean problems in the future. Jason suggested the couple create an extremely-limited budget for their wedding and stick to it. Past experience had shown Jason that couples who began their marriage in a financially responsible way and continued to keep a family budget, stood a better chance of financial success.

Although Jason did not receive an invitation to Jessica’s very small and budget-wise wedding – he heard all about it at their next credit counselling session. During that meeting, Jessica also shared details on the family budget her and her new husband had set up and were following.

At the end of 60 months, having honoured all the terms of her Proposal, Jessica was released from the unsecured debt covered by the Proposal (except the Student Loans*). She and her husband were then able to move on to the next phase of their marriage – confident in their ability to manage their finances.

 

*Due to the unique legal nature of Student Loans and the specifics of Jessica’s case – while the Student Loans would receive a portion of the $275 monthly payments, at the end of the Proposal, Jessica would still be required to pay back the balance owing on the Student Loans after any dividends they had received during the term.

To protect our client’s privacy, details of this case have been altered.

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt and live in the Toronto area, call us at 416-498-9200 to book a FREE, confidential appointment. We will review your financial situation in detail and discuss all of your options with you. Alternatively, you can fill out the form below and our team will reach out to you. 

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I cannot emphasize enough how thankful I am for Jackie Stanley's help with filing for bankruptcy.All of us dread being put in this position and we have a million questions about the process but trust me Jackie makes it so easy for you that you don't have to do anything yourself!She is very kind and friendly and puts you at ease right away. She emphasizes with you and let's you know it's not your fault.Most importantly when you leave that first meeting you will not believe the load that is taken off your shoulders. You can actually feel it!You are a godsend Jackie and I can't thank you enough!!I hope you are highly valued there as much as you are by me!
Sue Murray
18:45 05 Dec 21
Putting together and executing a Consumer Proposal can be daunting, that is unless you work with Cori Naron at David Sklar & Associates Inc. Cori's advice and support has been instrumental over the past five years. Thank you Cori!!
Barry Kuntz
20:37 01 Dec 21
I’m very happy with the services I received for Jackie Stanley who helped me get my finances in order. It was a quick and easy process & all of my questions were answered.
Amanda Frappier
01:18 19 Nov 21
I have had the privilege of being supported by Jackie at David Sklar Associate. She was very helpful, very professional and very friendly. She gave me the help I need. Thank you Jackie for your help.
Alex Taylor
22:03 17 Nov 21
Got my probe solved, great service
arny raposo
17:02 11 Nov 21
Jackie at Daivid Sklar and Associates is such a pleasure to work with. She explained everything in great detail and is always there when I have a question or concern. She really cares about her clients.
Steve Medica
09:33 10 Nov 21
I filed a proposal with another group, which came in as a referral from one of my brokers. My experience went from ok to bad to worse, due to lack of communication and education on the process I was to embark on. I worked with Cori Naron in the past, and I came to her now for help on literally doing the work that the other group should have done. Cori stepped in, educated me, advised on rights, responsibilities, how the process works and what potential outcomes may happen. I do not have enough words of recognition and gratitude for what she did - she alleviated stress, anxiety, dead-end thoughts and she made me live again. Congrats to DSklar for hiring her and retaining such talent.
Giani Kokolakis
18:45 25 Oct 21
Very professional service. Before contacting David Sklar & Associates i contacted bunch of other firms they seemed fishy. After I spoke with Jason Sklar at Hamilton Office I discovered professionalism with hope. I was explained every step of my situation with solution professionally. Thank you David Sklar & Associates.
Wajay Awan
07:29 12 Oct 21
I met David a few months ago and i am glad I did. He has helped me all the way through my bankruptcy with good advice and explained every step of the process. David is a very down to earth and very professional. Anytime I've had a question I was able to reach out to David by phone or email and he always got back to me. If your struggling with your bills and need a way to get help, I strongly recommend David Sklar &Associates to help you. My experience with them on 1-5scale would be a 5;; My life is so much better now, thanks to David Sklar.
Bruce Locke
16:13 08 Oct 21
I have had the privilege of being supported by Jackie S, at David Sklar n Associate.She was helpful, professional and friendly. I was able to get the help I needed at a difficult time in my life. I would recommend anyone who needs support with working out their debts to ask for Jackie, she will be waiting to assist however she can to help you through your debts. She works with a team who is always ready and responsive.Thank you Jackie and your team:)
Denise Simpson
15:17 09 Sep 21
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